Business

Swedish state-owned energy utility Vattenfall is in the focus of a study released Thursday by the German Institute for Economic Research (DIW). The survey of the firm's lignite mining activities in eastern Germany had been commissioned by the environmental pressure group Greenpeace in a bid to question Vattenfall's mining business model in the region. And the DIW's report delivered just that, speaking of the Swedish company's "risky business" that lacked sustainability and a sound future. The Berlin-based think tank admits that lignite mining in Germany's Lusatia region is still profitable for Vattenfall, but only because the environmental and health damage caused by coal mining are not yet reflected in the electricity price. Environmental footprint The study maintains that with over 70 of a total 88 million tons, Vattenfall's German carbon dioxide emissions surpass the company's CO2 budget of 65 million tons in 2020, while the firms Scandinavian power generation structure … [Read more...] about Study highlights Vattenfall’s risky German business

Arms sales went on a downward slide last year, falling by 0.6 percent compared to 2014, according to the latest analysis on the global arms industry by the Stockholm International Peace Research Institute (SIPRI). The trade had been experiencing a downward trend since 2011, but the reduction in arms sales last year showed that the pace of decline had slowed. Despite the decrease, arms sales for the world's top 100 companies in 2015 reached $370.7 billion (348 billion euros), the think tank said in its study, indicating that the sinking numbers were no sign that the world was getting more peaceful. "It [arms sales] has decreased, but it is still over a third higher than it used to be in the early 2000s," Aude Fleurant, director of the SIPRI arms and military expenditure program, told DW. "It is slowing down, possibly indicating a reversal of the trend since 2010. So it is difficult to say at this stage … There are contradictory trends all over the world and it … [Read more...] about Weapons business booming despite decline in sales: SIPRI report

Twice a year, every year since 1974, the Swedish government has submitted a formal request for North Korea to settle its debt for the purchase of 1,000 Volvo 144 sedans. And on each occasion, the request is simply ignored by Pyongyang. The original deal was for SEK600 million (62.02 million euros at current rates), but that has soared over the last 43 years to SEK2.7 billion (280 million euros) as interest payments continue to mount. It appears unlikely that North Korea ever intends to honor its debt, although a spokesman for the car manufacturer points out that it was fortunate to take out protection. "Volvo Cars insured the deal through the Swedish Export Credit Agency, EKN," company spokesman Per-Ake Froberg told DW. "When North Korea failed to pay for the cars, EKN stepped in, meaning that Volvo did not suffer financially." Read more: North Korea snubs South, restarts Kaesong industrial park Debts outstanding A number of Swedish engineering companies have also not been paid … [Read more...] about Businesses turn a blind eye to Volvo’s experiences in North Korea

Almost a month after visiting three Indian Ocean neighbors, Prime Minister Modi is in Europe this week where he is visiting France (April 9) and Germany (April 12) before proceeding to Canada, where he will visit Ottawa, Toronto and Vancouver from April 14 to 16. The three-nation tour is said to be centered on the PM's economic agenda of improving growth, boosting commerce and promoting Indian manufacturing. Modi has met the leaders of all three nations in multilateral summits before, but this is the first time he will embark on bilateral visits. France and Germany are two of the biggest foreign investors in India. While in France - India's top defense supplier within the EU - the PM is set to discuss investment opportunities as well as civil nuclear cooperation with President Francois Hollande. Modi will also discuss defense issues, especially the sale of 126 Dassault Rafale fighter jets to India. The third top agenda item under discussion will be the satellite with electronic … [Read more...] about Business as usual? India’s Modi in Europe and Canada

Sandro Gaycken, director of the "Digital Society Institute," sat down with DW on the sideline of the European School of Management and Technology's yearly forum, this year dealing with digitalization. DW: When it comes to cybercrime, what do you see as the greatest challenge that businesses face? We're observing a whole new series of attack patterns. So-called "ransomware" has recently spread, attacking companies by encrypting their data and demanding ransom money to unlock it. Businesses of all sizes are vulnerable to it. In the banking and finance industry we are seeing more and more attacks that deal with stock market manipulation and money transfers hijacking. Just recently a Bangladeshi bank attempted to transfer Bangladesh central bank governor resigns over cyber heist one million US dollars from New York. They made off with $80 million - if they had taken the whole billion it would have been the biggest bank robbery in history. What kind of attackers do businesses report … [Read more...] about IT expert: Cybercriminals are far ahead of businesses

Thousands of people trudged kilometers through the rain and queued for hours to watch the parade along Rajpath and past India Gate, amid heightened security and a transport shutdown in the area. Many came to catch a glimpse of Obama and his wife Michelle, including Deepak Bhargav. "I also want to see the new tanks, missiles and plane," the 45-year-old businessman said. Bhargav was enthusiastic about India's relationship with the US, saying American companies coming to India, "means more employment for Indians." Hari Om travelled all the way from East Indian state of Bihar so his children Suresh and Karan could see the parade. The 48-year-old wasn't sure how important the US was for India but thought it was good Obama was there. "It is good for India, Obama is a big man," he said. Both leaders spoke with optimism after an initial round of bilateral talks. Prime Minister Narendra Modi said there was "new excitement and energy" in the relationship, which "stands at a new level." He … [Read more...] about Obama means business with India

In intial statements, US corporate heads and business leaders have largely rejected Donald Trump's portrayal of his decision as a needed corrective to unfair climate rules. They often argued that the structural shift in world energy markets towards renewables and away from fossil fuels would continue, regardless of the US withdrawal. Even US oil majors reiterated their support for the endangered agreement. Chevron spokeswoman Melissa Ritchie said her company "supports continuing with the Paris Agreement as it offers a first step towards a global framework," adding that the accord aligned with the company's own policy on carbon emissions. An Exxon spokesman told the news agency AFP that the 2015 accord was "critical" given the rising emissions from India and China. "It's the first major international accord to address climate change that includes emissions reduction pledges from both developed and developing economies," he said. "We believe that the United States is well positioned to … [Read more...] about US businesses at odds with Trump over pullout from Paris accord

German firms believe Brexit "will seriously damage business with the United Kingdom," according to Eric Schweitzer, president of the Association of German Chambers of Commerce and Industry (DIHK), which surveyed 2,200 internationally active companies. Some nine percent of firms which have invested in the UK plan to shift investments elsewhere, with Germany and the rest of the EU the top choices in their relocation plans. Britain is the third-biggest export market for Germany after the United States and France, buying some 86 billion euros ($93.4 billion) of goods in 2016. The DIHK estimates about 750,000 German jobs are dependent on exports to Britain. Some 2,500 German firms active in the UK have created about 400,000 jobs, compared with around 220,000 people in Germany employed by 1,200 British firms. Trade will get worse Nothing will formally change in economic relations between Britain and the 27 remaining EU countries until the end of two-year exit talks - expected to be … [Read more...] about German firms warn Brexit will ‘seriously damage’ UK business

Turkish President Recep Tayyip Erdogan on Thursday told the heads of chambers of commerce in Ankara that Turkey would choke off all funding to the network of run by the US-based Islamic cleric it blames for orchestrating a failed July 15 coup. Erdogan said Turkey would "totally cut off all business links" in Turkey and abroad that are affiliated with the Fethullah Gulen movement. Turkey blames Gulen, once a close Erdogan ally, for ordering the coup that left nearly 250 dead and has spawned a major purge of thousands of alleged Gulenists within the military and state bureaucracy. Turkey accuses Gulen of forming a "parallel state" terror organization that infiltrated key state institutions. "They have nothing to do with a religious community; they are a fully-fledged terrorist organization ... This cancer is different. This virus has spread everywhere," Erdogan said. For more than two years Erdogan has been clamping down on the Gulen movement, taking over and shutting down … [Read more...] about Turkey’s Erdogan vows no mercy for Gulen businesses

Political upsets have carried on into 2017. The election of Emmanuel Macron in France, and his extraordinarily young party, was followed by the unexpected revival of a reportedly far-left Labour Party in the United Kingdom. As such, questions need to be asked about what Jeremy Corbyn, now the leader of a sizeable opposition and potentially Britain's future prime minister, could mean for business relations between the UK and Germany. The Labour Party was all but routed in the 2015 general elections. It lost its stronghold of Scotland to the Scottish Nationalists and a great deal of ground in northern and central England to the Conservatives. Corbyn's rise as leader, after replacing Ed Miliband, was heavily contested throughout 2016, which, on top of his obvious lack of enthusiasm for the press, led to a strong media consensus: that shabby, socialist Corbyn was an anachronism in these polished, center-left times. It was this perceived lack of widespread support that Theresa May and … [Read more...] about What Jeremy Corybn could mean for Anglo-German business ties